An Encumbrance Certificate is a crucial document that verifies whether a property is free from any monetary or legal liabilities. It ensures transparency in property transactions by confirming that there are no pending dues or legal issues against the property. Typically issued by the sub-registrar’s office, it details all transactions related to the property during a specified period. This certificate is essential for property buyers and financial institutions during loan processing, ensuring they invest in a clear and unencumbered asset. It provides peace of mind by safeguarding against potential disputes or claims that could affect the property’s ownership status.